CASE STUDY: When Titles Don’t Fit: How a Boundary Gap Stalled a Consolidation — and How It Was Fixed

Introduction

Title consolidation in Victoria typically involves submitting an application to Land Use Victoria for assessment. While many consolidations can proceed without the need for a survey, there are instances where Land Use Victoria requires one to confirm the accuracy of parcel boundaries.

Humphries Land Surveying recently undertook such a project for a client in Melbourne’s southeastern suburbs, assisting with the consolidation of two adjoining parcels that required a boundary survey as part of the application.

Background

The subject parcels were physically linked (i.e. there were no physical gaps between the relevant boundaries) however, due to an error in the registered plan on one of the old titles, there was a small gap between one of the boundaries which meant that legally there was a gap between the titles. The parcels did not mathematically fit together, resulting in them being deemed non-contiguous.

This created unforeseen complications in the title consolidation application and extended the time frame for the issuing of the new title. Land Use Victoria required a survey to be undertaken over the parcels as it deemed this necessary to accurately define the boundaries of the parcels being merged.

This case study explores a scenario involving the consolidation of non-contiguous land parcels in Victoria, Australia. The example focuses on a property owner, Jane Smith, who seeks to merge her two separate parcels of land into a single title to enhance property value and streamline management.

Background


Property Details

- **Parcel A**: A 1-acre residential lot located in a suburban area of Melbourne, purchased by Jane in 2010. This parcel is developed with a single-family home.

- **Parcel B**: A 0.5-acre vacant lot located approximately 500 meters away from Parcel A. Jane acquired this parcel in 2018, intending to use it for future expansion or investment.

Objectives

Jane’s primary goals for consolidating her parcels include:
- Simplifying property management by reducing the number of titles.
- Increasing the marketability of her property by presenting it as a larger, unified estate.
- Exploring future development opportunities that could arise from the merged parcels.

Initial Considerations

Before proceeding with the consolidation, Jane consulted with a land surveyor and a legal advisor to understand the implications of merging non-contiguous parcels. They discussed the following key points:

1. **Legal Requirements**: Merging non-contiguous parcels often involves additional scrutiny from local authorities, as zoning and land use regulations may be impacted.

2. **Survey Necessity**: A professional survey would be required to clearly define the boundaries of both parcels and identify any existing easements or rights of way.

The Consolidation Process

Step 1: Conducting a Survey

Jane hired a land surveyor to assess both parcels. The survey revealed:


- Clear boundaries for both Parcel A and Parcel B.
- An existing easement on Parcel B that granted access to a neighboring property, which needed to be considered during consolidation.

Step 2: Preparing Documentation


With the survey complete, Jane gathered the necessary documentation, including:

- Title deeds for both parcels.
- The survey plan detailing boundaries and easements. - A statement outlining her objectives for consolidation.

Step 3: Submitting the Application

Jane submitted her title consolidation application to Land Use Victoria (LUV), including all required documents. The application detailed her intention to merge the parcels and highlighted how the consolidation aligned with local planning regulations.

Step 4: Review Process

The application underwent a review by LUV, which took approximately eight weeks. During this time, LUV requested additional information regarding the existing easement on Parcel B and its implications for the consolidation.

Step 5: Addressing Concerns

Jane worked with her legal advisor to address LUV’s concerns by providing documentation clarifying the easement’s impact. They assured LUV that the easement would remain intact and would not hinder future development plans.

Step 6: Approval and Title Issuance

After satisfactorily addressing all queries, LUV approved the title consolidation application. Jane received a new consolidated title that combined both parcels into one, designated as a 1.5-acre property.

Outcomes


The consolidation of Jane's non-contiguous parcels yielded several benefits:

1. Simplified Management: Jane now manages a single title, streamlining her property administration tasks.

2. Increased Property Value The consolidated property has enhanced market appeal, making it more attractive to potential buyers.

3. Future Development Potential: With the new title, Jane can explore various development opportunities, such as constructing additional units on Parcel B or selling the land as a larger estate.

Conclusion

This case study illustrates the complexities and benefits of consolidating non- contiguous parcels in Victoria. By navigating the legal requirements and addressing potential challenges, Jane successfully merged her properties, positioning herself for future growth and investment opportunities. The case underscores the importance of professional guidance in the title consolidation process, particularly when dealing with non-contiguous land parcels.

Concluding comments

When considering consolidation of titles, it is vital to seek professional advice from a licensed land surveyor who will be able to guide you step by step through the process. In addition to this is it is also recommended you seek professional legal, financial and possibly planning advice, as the process can be very technical and have unforeseen implications for zoning, planning permissions, easements and taxation.

Notwithstanding, consolidating titles can have considerable benefits for landowners and the benefits usually outweigh any disadvantages

At Humphries Land Surveying, we are able to draw on our extensive experience in title consolidations to provide you with tailored advice, and assist you in navigating the process smoothly and successfully.

*This case study presents a hypothetical example to illustrate the complexities involved in title consolidation and highlight the vital role land surveyors play in managing these projects.